Facebook allows people to connect with each other in ways they never could, across states and time spans like never before. The problem is, we think it's free, yet it costs us our privacy to an extent...even with the privacy settings. Why? Because privacy policies on Facebook change without us even being made fully aware.
I'm not fond of Facebook for a lot of reasons. Mainly, I don't like what it does to people by giving people a medium to express their paranoia (usually in the form of hearsay chain letters). But my problems with Facebook have more to do with how people use it and not so much with how Facebook is run. Whether it's wacky opinions or personal content, users of Facebook need to show more discretion.
Facebook can do whatever it wants; and if people really don't like it, they can shut down there account. They have the power to do that. If enough people stop using Facebook, they'll change there policies. Until that happens, the message Facebook is receiving from it's users is that the "problem" is not bad enough. And it really isn't that bad. Users have the choice of what they want to be shown to the public. It's the users' responsibility.
I do not think Facebook takes privacy as seriously as the users do. It is a matter of great importance, so great in fact that our constitution mentions the right to privacy several times. I personally ended my activation of their services because it violated what I thought was my freedom to privacy. Any educated person would be wise to be wary of trusting a business with personal issues unnecessarily.